MicroStrategy (MSTR) Stock: Company Raises $715M To Expand Bitcoin Holdings

TLDR

• Strategy priced its new Series A Perpetual Stream Preferred Stock (STRE) at 80 euros per share, raising approximately $715 million in gross proceeds to buy more Bitcoin.
• The STRE shares pay 10% annual dividends quarterly and can rise to 18% if dividends are deferred, ranking among the highest yields in Strategy’s preferred stock lineup.
• Strategy added only 1,417 BTC in Q3 compared to over 9,000 BTC in Q2, marking a slowdown in acquisitions as market conditions tightened.
• The company now holds 640,808 BTC, representing about 3.1% of Bitcoin’s total supply, while its market premium dropped to 1.2×, the lowest since early 2023.
• S&P Global Ratings assigned Strategy a B- credit rating in October, classifying it as non-investment grade due to concentrated Bitcoin holdings.

Strategy moved forward with its Bitcoin buying plan this week. The company priced new preferred shares to raise money for more crypto purchases.

The Series A Perpetual Stream Preferred Stock launched at 80 euros per share. Strategy expects to collect about $715 million from the sale.

The company plans to use the money to buy more Bitcoin. Some funds will also go toward general business needs.

MicroStrategy Incorporated, MSTR

The STRE shares offer a 10% annual dividend paid quarterly. Payments start on December 31, 2025.

If Strategy delays dividend payments, the rate can jump to 18%. This makes STRE one of the highest-yielding options in the company’s preferred stock collection.

Slowing Bitcoin Purchases

Strategy’s Bitcoin buying has cooled recently. The company added just 1,417 BTC during the third quarter.

That’s a big drop from earlier in the year. Strategy bought over 9,000 BTC in Q2 and roughly 12,000 BTC in Q1.

The company now holds 640,808 BTC total. That equals about 3.1% of Bitcoin’s entire supply.

Strategy’s market premium has also shrunk. The mNAV multiple fell to roughly 1.2×, the lowest level since early 2023.

The original STRE filing on November 3 targeted 3.5 million shares. The final offering more than doubled to 7.75 million shares.

This increase shows investors still want exposure to Strategy’s Bitcoin-focused business model. The company keeps finding buyers for its high-yield securities.

Credit Rating and Revenue Changes

S&P Global Ratings gave Strategy a B- credit rating in October. The rating service labeled the company as non-investment grade.

The rating sits 15 levels below S&P’s top AAA rating. Anything BB or lower counts as non-investment grade.

S&P pointed to Strategy’s heavy Bitcoin concentration as a risk factor. The ratings agency said the company needs to diversify beyond Bitcoin.

Strategy’s revenue dropped in Q3. The company posted $2.8 billion in revenue, down from $10 billion in Q2.

The MSTR stock price has trended down since July. Shares traded just under $235 on Friday.

The STRE shares rank above some of Strategy’s other securities. They sit senior to STRK, STRD and common stock.

However, STRE shares are subordinate to STRF and STRC shares. They also rank below the company’s outstanding debt.

The new shares won’t be available to retail investors in the European Union or United Kingdom. Strategy restricted the offering from those markets.

Bitcoin prices have stayed above $100,000 this week. The cryptocurrency faced volatility and ongoing economic pressures.

Strategy introduced its first Treasury Preferred series, STRC, in July. That offering raised $4.2 billion for Bitcoin purchases.

The company has launched several perpetual preferred stock offerings this year. These include STRF, STRK and STRD before the latest STRE issue.

Analysts expect Bitcoin purchases to pick up again. They believe buying will increase once market premiums and funding conditions improve.

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